Bill > HB117

This bill modifies Hawaii's condominium laws by establishing new requirements for replacement reserves funds and clarifying the fiduciary responsibilities of condominium association boards. Specifically, the bill requires that a condominium association's replacement reserves fund maintain a minimum balance (though the exact percentage is not specified in the provided text), with an exception for associations that can demonstrate they are adding a certain percentage to their fund each calendar year. The bill also expands the definition of fiduciary duty for board members to include maintaining this minimum replacement reserves fund balance, meaning that failure to do so could be considered a violation of their legal obligations. A new provision allows board members to avoid liability for such a violation by indicating their written disagreement with the board's action or by rescinding the conduct within 45 days. Additionally, the bill provides that new condominium associations are not required to collect replacement reserves assessments until the fiscal year following their first annual meeting. These changes aim to ensure that condominium associations maintain adequate financial reserves for future maintenance and repairs, protecting both the property and the unit owners' investments.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=117&year=2026